Author Topic: Retirement allocations  (Read 460 times)

GotLotsToLearn

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Retirement allocations
« on: December 05, 2018, 04:19:18 PM »
Hello:

I've been recently introduced to FI and feel like my eyes have been opened, I could go on about this quite a bit more but let me get to the point. Since I've decided to take charge of my financial future I've made some changes to my current retirement savings plan and contributions. Currently, I have a 401K where I can only contribute 7% of my income and where my employer matches up to 9.27%. I have a 403b where I can max out whatever is left after the 401K contributions and I have also signed up for a 457b which I am also maxing out. All of these plans are managed by TIAA-CREF for my employer.

I've changed all of my future allocations for all plans to go strictly into a total market institutional class index fund (TCIEX). However, I would like some suggestions as to what I should do with the allocations in the portfolio as they were before I made any changes. The balance is $180K and it's split like this:

TIAA Real Estate
Expense Ration=0.79% - Portfolio Allocation=7.33%

TIAA Traditional
Expense Ration=0.49%? - Portfolio Allocation=28.91%

TIAA-CREF IntExpense Rationnational Equity Fund (PremiExpense Ration)
Expense Ration=0.64% - Portfolio Allocation=6.79%

TIAA-CREF IntExpense Rationnational Equity Index Fund (Institutional)
Expense Ration=0.06% - Portfolio Allocation=15.84%

TIAA-CREF Large-Cap Value Index Fund (Institutional)
Expense Ration=0.06% - Portfolio Allocation=5.40%

TIAA-CREF Quant Small-Cap Equity Fund (PremiExpense Ration)
Expense Ration=0.56% - Portfolio Allocation=1.64%

TIAA-CREF Real Estate Securities Fund (PremiExpense Ration)
Expense Ration=0.66% - Portfolio Allocation=3.40%

TIAA-CREF S&P 500 Index Fund (Institutional)
Expense Ration=0.06% - Portfolio Allocation=5.05%

TIAA-CREF Small-Cap Blend Index Fund (Institutional)
Expense Ration=0.06% - Portfolio Allocation=5.52%

TIAA-CREF Social Choice Equity Fund (PremiExpense Ration)
Expense Ration=0.33% - Portfolio Allocation=17.75%

CREF Bond Market Account (R3)
Expense Ration=0.31% - Portfolio Allocation=1.40%

CREF Growth Account (R3)
Expense Ration=0.26% - Portfolio Allocation=0.97%

I am wondering whether I should move all these funds to TCIEX as well or if I should leave them as is. The expense ratios on these funds are not terribly high but I can definitely do much better by having them in TCIEX at 0.06 and with better prospects of long-term returns. Any suggestions?

MDM

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Re: Retirement allocations
« Reply #1 on: December 05, 2018, 04:52:27 PM »
GLTL, welcome to the forum.

Twelve different funds is a bit much.  Decide what asset allocation you want, then consider some form of "Three-fund portfolio" to match that.

GotLotsToLearn

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Re: Retirement allocations
« Reply #2 on: December 05, 2018, 05:13:53 PM »
Simple enough answer, thanks!

frugaliknowit

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Re: Retirement allocations
« Reply #3 on: December 06, 2018, 04:35:23 AM »
If you want to be super sophisticated and don't mind the tedium of rebalancing (once per year?), you could attempt to match one of these portfolios:  http://paulmerriman.com/mutual-funds/

This is another approach where you just use a target date fund and just add some small cap to give it some kick:  https://paulmerriman.com/2-funds-for-life/